178 days to election -- JPMorgan loss gives D.C. leverage for more bank enforcement, regulation -- Romney courts Va., evangelicals -- N.C., site of Dem. convention, now headache for party

JAMIE DIMON, chairman and CEO of JPMorgan Chase & Co., to David Gregory, in an interview taped yesterday for “Meet the Press,” when asked if the bank broke any laws, or accounting or SEC rules: “So we’ve had audit, legal, risk, compliance, some of our best people looking at all of that. We know we were sloppy. We know we were stupid. We know there was bad judgment. We don’t know if any of that is true yet. Of course regulators should look at something like this -- that’s their jobs. So we are totally open to regulators, and they will come to their own conclusions. But we intend to fix it and learn from it and be a better company when it’s done.” Video http://on.msnbc.com/J2uCtr

--Financial Times p. 12, “How JPMorgan loss hit war on Volcker: Investment bank’s travails play into the hands of regulators and advocates of tighter control,” by Tom Braithwaite and Tracy Alloway in New York and Shahien Nasiripour in Washington: “For most of the year, Wall Street seemed to be winning the war on the Volcker … In early 2010, [Paul] Volcker persuaded President Obama that banks that enjoyed government support should not be allowed to make risky bets with their own money. … Deluged by comment letters, and struggling to separate proprietary trading from legitimate market making, government officials delayed the rule.

“This gave banks breathing space and hope that shifting political winds would blow away the most grievous threat to their business models. If Republicans did well in general elections in November, banks hoped that pressure could be brought on regulators to tone down or scrap the rule. … The loss [Morgan] could add impetus to calls to break up the biggest banks. Regulators have the power to order disposals for financial stability reasons.”

DRIVING THE DAY – On a conference call for reporters yesterday, a senior Romney adviser previewed Mitt Romney’s commencement address at 10 a.m. today in Lynchburg, Va., at Liberty University, which was founded by the late Jerry Falwell and bills itself as “the largest private non-profit university in the nation, the largest university in Virginia, and the largest Christian university in the world”: “This is not a policy speech. It is a speech for the graduates and their parents. It's more of a personal speech, where Governor Romney will talk about what he has learned from his own life experience, and he'll share some of those life lessons with the graduates. He will talk about personal responsibility, the dignity of hard work, and the commitments of family. …

“[M]arriage isn't the focus of the speech, but he will mention the fact that marriage is an enduring institution which deserves to be defended. … He dealt with this issue during his term as governor. He is opposed to gay marriage. He believes marriage is a relationship between a man and a woman. He does support some form of domestic partnership benefits that would confer rights such as hospital visitation and rights of survivorship. But the reason that the governor got into the race for President is because of the dismal state of the economy. Jobs and the economy is the message that carried him through the primaries. It's what he takes with him into the general election, and it is why he is going to win in November.”

SENTENCE OF THE WEEK – NYT’s Ashley Parker and Jodi Kantor: “Presidential elections are sometimes described as high school popularity contests on a national level, and the Romney campaign clearly was worried that the episode could define Mr. Romney as a familiar yearbook character: the rich kid with a mean streak.” http://nyti.ms/J06wjP

--WashingtonPost.com add to bullying story: “Editor’s Note: An earlier version of this story reported that [Romney high-school classmate Stu] White ‘has long been bothered’ by the Lauber [shearing] incident. White later clarified in a subsequent interview that he has been disturbed by the incident since he learned of it several weeks ago from a former classmate, before being contacted by The Washington Post.”

--WashPost Ombudsman Patrick B. Pexton writes on “Omblog” that the update should have been labeled “Correction,” but concludes: “Romney bullying story holds up to scrutiny … I think the story was interesting, compelling and well documented.” http://wapo.st/IUUzMN

TOP TALKER – WSJ A1, “Democrats' Fund Taps Corporate Donors for Convention,” by Brody Mullins and Peter Nicholas: “Democrats have trumpeted their ban on corporate donations to their national convention this summer, saying that it shows they are free from the influence of special interests. But through a special fund, [the host committee is] accepting millions of dollars in corporate contributions to help pay for many of the activities outside the convention hall … Donors include Wells Fargo & Co., Bank of America Corp. and Duke Energy Corp., all significant employers in Charlotte, N.C., where the convention will be held in early September. The fund, called New American City Inc., plans to raise more than $10 million to cover convention expenses, including salaries for convention workers, promotional materials and overhead. Costs also include entertainment for delegates and others, such as a welcoming party for the media that will feature celebrity performers and as many as 10,000 guests.

“The Democratic National Committee and the convention host committee say no corporate money will be spent on activities related to nominating the president or other events directly connected to the formal nominating process. … Before this year, both political parties accepted corporate funding for their conventions. … Republicans … are accepting unlimited donations from individuals and corporations to fund their gathering this summer in Tampa, Fla. …

“Democrats said the ban applies only to the host committee's main fundraising account, which helps stage the nominating process inside the convention hall. The host committee is an umbrella group, legally separate from the Democratic National Committee, that includes officials from the host city and other Democratic insiders. … [T]he fund was established by … Joseph Sandler, a former DNC campaign-finance lawyer who is counsel to the host committee; and Will Miller, who is on the board of the host committee. Anthony Foxx, Charlotte's mayor and the co-chairman of the host committee, is president of the New American City fund.”

THE NARRATIVE – “North Carolina a political headache for Democrats,” by AP’s Mitch Weiss in Charlotte: “Once a bright spot for President Obama, North Carolina is now more like a political migraine less than four months before Democrats open the party's national convention in Charlotte. … Labor unions, a core Democratic constituency, are up in arms. Democratic Gov. Bev Perdue isn't running for re-election; Democrats say she was likely to lose. The state Democratic Party is in disarray over an explosive sexual harassment scandal. Voters recently approved amending the state constitution to ban gay marriage, a position that runs counter to Obama's. And unemployment in the state remains persistently high. …

“When Democrats announced the choice in February 2011, they said selecting the Southern city signaled Obama's intent to fight hard for the conservative-leaning state like he did in 2008. … Now traditional Democratic Party groups are threatening huge protests in part because they're deeply uncomfortable that the convention is being held in one of the least union-friendly states. And thousands of Democrats across the country are calling for the convention to be relocated because of the gay-marriage vote. Democrats say that won't happen.”

THE BIG PICTURE – L.A. Times A1, middle of page, “U.S. lags in global healthcare push,” by Noam N. Levey in D.C.: “Even as Americans debate whether to scrap President Obama’s healthcare law and its promise of guaranteed health coverage, many far less affluent nations are moving in the opposite direction -- to provide medical insurance to all citizens. China … is on track to complete a three-year, $124-billion initiative projected to cover more than 90% … Mexico … just completed an eight-year drive for universal coverage … ‘This is truly a global movement,’ said Dr. Julio Frenk, a former health minister in Mexico and dean of the Harvard School of Public Health. ‘As countries advance, they are realizing that creating universal healthcare systems is a necessity for long-term economic development.’” Not online yet

FOR SUNDAY PAPERS – OBAMA-WORLD VIEW – AP’s Rob McGuire: “The general consensus across a world weary of war and economic crises is that Barack Obama has not lived up to the lofty hopes that surrounded his election. But while the U.S. president's international popularity has slipped a peg or two, he stands head and shoulders above his presumed Republican rival Mitt Romney, thanks in part to the lingering memory of the last president from his side of politics, George W. Bush. And for many Western countries, Republican politics are also too far to the right. Some say Obama's enduring [global] popularity is a triumph of style over policy substance, with few of his international fans being close followers of U.S. politics.”

** A message from the American Petroleum Institute: Americans from all walks of life are becoming energy voters. They know America needs more energy from all sources - including domestic oil and natural gas - to create jobs and get our economy moving. Learn more at www.Vote4Energy.org. **

HUFFPOST TURNS 7 – Arianna emails: “On my way to london (to interview the dalai lama among other things) … (and of course we did blow the candles on a cake!)”

--Arianna email to staff, with subject line, “HuffPost Turns 7”: “On Wednesday, HuffPost (born at 3 a.m. on May 9, 2005) will turn seven years old. So please join us in the newsroom at 2:30pm for an age-appropriate celebration, with cupcakes, clowns, cotton candy, a sno-cone machine, a magician, and a balloon twister. Bring your children – and your inner child. Arianna”

WHAT RAHM IS READING -- Chicago Tribune p. 1, “Duckworth, Walsh debate for 1st time: Rivals spar over student loans, Medicare, jobs,” by Monique Garcia and Rick Pearson: “The first debate of a nationally significant congressional contest saw Republican Rep. Joe Walsh come out in favor of allowing federal student loan interest rates to double this summer and Democratic challenger Tammy Duckworth accuse her foe of advocating ‘crackpot’ tea party ideas that she struggled to define. The Friday night exchange on CLTV’s “Politics Tonight” also marked the first time the two candidates for a northwest suburban congressional seat had met.

“Walsh’s fame as a tea party icon is matched by Duckworth’s backing by key elements of President Obama’s camp, including political strategist David Axelrod and Chicago Mayor Rahm Emanuel. The opponents wasted little time hitting on the central themes of the 8th Congressional District campaign. The freshman congressman sought to tie Duckworth to Obama and suggested that the Democratic effort to hold the line on student loan rates was a politically inspired attempt to hold young voters for the president's re-election bid.” http://trib.in/K4uBRl

THE PRESIDENT’S WEEK AHEAD: “On Saturday, the President and the Vice President will honor the 2012 National Association of Police Organizations (NAPO) TOP COPS award winners at a ceremony in the Rose Garden. … On Sunday, the President has no public events scheduled. … On Monday, the President will travel to New York City to deliver the commencement address at Barnard College. While in New York City, the President will also tape an appearance on ‘The View.’ The President will then attend campaign events before returning to Washington …

“On Tuesday, the President will deliver remarks at the National Peace Officers Memorial Service, an annual ceremony honoring law enforcement who were killed in the line of duty in the previous year. Also on Tuesday, the President will welcome Major League Soccer champions, the LA Galaxy, to the White House to honor their 2011 season and their MLS Cup victory. … In the evening, the President and the First Lady will host a dinner for the Combatant Commanders and spouses at the White House. The Vice President will also attend. This dinner is closed press. On Wednesday, the President will deliver remarks in the Washington, DC area, where he will continue to call on Congress to act on a ‘To Do List’ that will create jobs and help restore middle class security. Also on Wednesday, the President will award Specialist Leslie H. Sabo, Jr., U.S. Army, the Medal of Honor for conspicuous gallantry. The First Lady will also attend. …

“On Friday, the President will deliver the opening keynote to the Symposium on Global Agriculture and Food Security at the Ronald Reagan Building in Washington, DC. Later on Friday, the President will travel to Camp David for the G-8 Summit, which will address a broad range of economic, political and security issues. The President will remain overnight at Camp David. On Saturday, the President will remain at Camp David for the G-8 Summit. Later on Saturday, the President will travel to Chicago, Illinois, where he will welcome NATO allies and partners to his hometown for the NATO Summit on May 20-21, which will be the premier opportunity this year for the President to continue his efforts to strengthen NATO in order to ensure that the North Atlantic Alliance remains the most successful alliance in history, while charting the way forward in Afghanistan. The First Lady will travel to Chicago with the President.”

THE V.P.’S WEEK AHEAD: “On Sunday, the Vice President will be in Wilmington, Delaware. There are no public events scheduled. … On Tuesday, the Vice President will attend a dinner for the Combatant Commanders and spouses hosted by the President and the First Lady at the White House. On Wednesday and Thursday, the Vice President will be in Ohio for campaign events. On Friday, the Vice President will attend a campaign event in Wilmington.”

MEDIAWATCH – WashPost Ombudsman Patrick B. Pexton, “A better Web experience” (online headline: “Information technology rules The Post”): “The Post today literally cannot do its journalism without a large IT staff. … The Post now has 195 of them; 33 were hired in the past six months alone. … 14 are embedded in the newsroom … helping the storytellers find creative ways to produce and distribute their information. … Shailesh Prakash [is] The Post’s new vice president for technology and chief information officer, hired last September. He came from Sears.com after stints with Microsoft, Netscape, Sun Microsystems and Motorola. …

“Prakash says mobile devices — smartphones and tablets — will do to laptops and desktops what the Web did to print, and The Post’s mobile Web site must be top quality to win that audience. Prakash wants media companies to compete with the Googles and Facebooks. … Better that The Post create its own technology for information transmission and distribution than to have a Silicon Valley start-up grab the revenue from doing so.” http://wapo.st/JMPSB9

SPORTS BLINK – AP release: “In August, the AP will launch a new weekly poll focused on NFL teams. Called AP Pro32, the AP will rank each of the NFL's 32 teams based on balloting from a panel of national media members who cover the league and its teams. The poll will be similar to the AP Top 25, the 75-year-old poll that ranks the nation's top college football teams.”

-- SiriusXM's “Polioptics” with Adam Belmar and Josh King (SAT & SUN 12pm ET / 6 pm ET): Michael Feldman and Chip Smith of The Glover Park Group recall the tick-tock of the historic Concession Retraction of Nov. 7, 2000. Ben LaBolt, Obama 2012 press secretary, compares the zeitgeist of the 2008 "Change We Can Believe In" campaign to the reelection’s "Forward." Arnette Heintz, former Secret Service Agent and security advisor to the City of Chicago, previews the plans for the upcoming NATO Summit in the Windy City. On SiriusXM's P.O.T.U.S. Ch. 124; also available for download on iTunes and at http://www.polioptics.com

** A message from the American Petroleum Institute: Americans from all walks of life are becoming energy voters. They know America needs more energy from all sources to create jobs and get our economy moving. That means developing America's plentiful domestic oil and natural gas resources, for new opportunities, a new era of energy security and a brighter future for all Americans. Learn more at www.Vote4Energy.org. **

****** A message from UnitedHealth Group: What does it take to create a modern, high-performing, simpler health care system? Expanding access to care through proven state-based coverage and employer-sponsored insurance. Making health care more affordable with consumer-directed care and value-based payments. Supporting and modernizing Medicare to meet the complex health challenges of America’s seniors. And reinvesting in health to support research and innovation. Learn more about these ideas at http://www.unitedhealthgroup.com ******

Authors:

About The Author

Mike Allen is the chief White House correspondent for POLITICO. He comes to us from Time magazine where he was their White House correspondent. Prior to that, Allen spent six years at The Washington Post, where he covered President Bush's first term, Capitol Hill, campaign finance, and the Bush, Gore and Bradley campaigns of 2000. Before turning to national politics, he covered schools and local governments in rural counties outside Fredericksburg, Va., for The Free Lance-Star, then wrote about Doug Wilder, Oliver North, Chuck Robb and the Bobbitts for the Richmond Times-Dispatch, where he nurtured police sources on overnight ride-alongs through housing projects. Allen also covered Mayor Giuliani, the Connecticut statehouse and the wacky rich of Greenwich for The New York Times. Before moving to The Times, he did stints in the Richmond and Alexandria bureaus of The Washington Post. Allen grew up in Orange County, Calif., and has a B.A. from Washington and Lee University, where he majored in politics and journalism.